AJAG Article

Abstract

This study examines the effects of naira redesign on Nigeria‘s socio-political and economic stability.
It explores the rationale behind the redesign, its impact on SMEs and the informal sector, participants‘
perceptions, and policy implications for future currency redesigns. Using the Keynesian model, the
study analyzed the money supply's influence on demand, inflation, and overall stability. Data was
gathered from 200 respondents via structured questionnaires targeting small business owners and the
general public. Findings reveal that the redesign aimed to enhance security, combat counterfeiting,
and improve money control. However, small businesses, especially in the informal sector, faced
challenges adapting to the new currency. Public attitude was generally passive, with confidence in the
redesign process hinging on transparent government communication. The study concludes that while
the naira redesign holds positive economic prospects, it requires strong policy support to curb
inflation and build public confidence. Recommended measures include increasing awareness
campaigns, engaging stakeholders, and aligning future redesigns with international standards to boost
investor confidence. These steps are essential for achieving the naira redesign‘s goals and ensuring
economic stability in Nigeria.

Naira Redesign and Informal Sector in Akoko South West Local Government Area of Ondo State, 2024, Vol. 2, No. 1, pp. 67-78. PDF